Supply and demand drives forex prices but we cannot see it. All we can see is price. So if price rises, we can be certain that demand did this, even though we cannot see and quantify the demand. This is enough for trading, surely?
If it doesn’t work, play with it and make adjustments until it does. Backtest it again and again.
If it works, identify under what conditions. In my opinion, if you backtest throughout the past 10 years, you will have encountered just about every market condition: ranges, swings, and crashes. What else is there?
If your strategy works throughout different years, but fails in forward testing, the problem is you, not the strategy. You gotta learn how to properly apply your strategy.
in terms of trade profiting ,supply and demand failed ,support and resist failed ,non of your theory ,indicators,system will work ,the more you trade ,the more you’ll agree with me.
In the context of trading and financial markets, supply and demand zones are used as a strategy to identify potential entry and exit points based on where large volumes of buying (demand) or selling (supply) have occurred in the past. These zones are identified by the criteria you mentioned, like a break of structure, imbalance, and the presence of several bullish or bearish candles. Following the trend can indeed enhance the effectiveness of this strategy.
Yes Supply and Demand strategies can be profitable to varying degrees. A supply or demand zone does need more qualification than the short list that you mentioned but those are minimal requirements.
A lot of information can be obtained by how price reacts with supply and demand zones.
Most SMC and Supply and Demand traders use multiple time frames such as the H4 for setup and M15 for entry or H1 setup and M5 for entry. There are those that use a single time frame but I’m sure that they at least take a peek at the higher time frames even if not doing heavy analysis on them.
Trend lines are useful as a visual aid to plot the rate of rise or rate of decline of price but their power as sloped support and resistance is anecdotal. You can actually follow the trend more accurately by following supply and demand. Trend lines tend to act as bait to lure traders into becoming liquidity.
Supply and Demand was a key component of my trading until I found the short cut. I don’t use it that often as a strategy anymore but I can still identify high probability zones.